EMEA PC sales results provide surprise boost

Increase in shipments of both PCs and laptops

The EMEA PC market is defying the doomsayers, with both Gartner and IDC reporting increases in sales of both desktops and laptops in the second quarter of 2005.

Gartner reported an 18.7 per cent increase in PC shipments, totalling 15.4 million units. Aggressive pricing and an increase in mobile PC sales were the main drivers behind the growth, according to the firm.

“The EMEA PC market saw a large increase during June. This was driven by a double-digit fall in the average selling prices of mobile PCs,” said Ranjit Atwal, Gartner analyst. “In addition, end of quarter promotional deals increased inventory levels rather than drove user demand. This is a strategy that is unsustainable in the medium term.”

Hewlett-Packard (HP) sold the most during the quarter with a 17.2 per cent market share, followed closely by Dell with 12.8 per cent.

Atwal added that HP’s PC shipments exceeded the market average for the first time in a year, showing a 32.3 per cent Q2 increase. “2005 will still be a good year, but resellers need to get away from entry-level price points and explain the benefits to users of laptop solutions,” Atwal said.

Leanne Gravil, branch manager at VAR CBC Computer Systems, said: “Laptops were certainly outselling desktop PCs during the second quarter and HP was a good seller.”

Separately, IDC predicted the EMEA PC market will expand by 23 per cent year on year in Q2.

Figures from its Quarterly PC Tracker report showed that the abundance of entry-level price points across the market has been one of the major drivers behind an increase in unit shipments.

However, the report warned that competition will remain high owing to increased pressure from Asian mobile vendors looking to attack the EMEA market.

Tomas Oupicky, senior analyst at IDC CEMA, said: “Notebooks are rapidly gaining share, growing close to 100 per cent this quarter. Desktops remain the dominant force, driven by low cost and competitive deals.